Re: Washington State - 1st and 2nd mortgage
Posted by OC Andy on November 15, 2007 at 10:37:24:
In Reply to: Re: Washington State - 1st and 2nd mortgage
Posted by broke on November 14, 2007 at 21:24:20:
Broke:
You should prepare for all options regarding the property.
Will the 1st recoup their remaining principal balance plus fees., etc. at the Trustees or Sheriff's Sale? - maybe. Investors in my area will pay up to 82% - 83% of FMV for a property in a roaring seller's market. But since May, 2007, that dynamic has changed completely and buyers at the auction are not bidding on homes even at 75%. This may be the case in your area too.
The short sale isn't a cure-all for being upside down(or almost upside-down) on your home, but selling before the gavel pounds at the auction is almost always the preferred way to go.
A completed foreclosure will destroy your credit for years to come and will make even renting in some places a difficult process.
Remember that in your state, you may have a right of redemption (check the state procedures table) and can save your credit by finding a buyer before the ROR period has expired.
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